UTILITIES HAZY ON MATS COMPLIANCE: The clock is ticking, but energy industry insiders can’t seem to agree on how much time utilities really need to meet EPA’s mercury and air toxics standards — and some companies have been slow on the draw. The compliance timeline has been one of the greatest points of contention surrounding the Obama administration’s strict new rule for power plants. The Clean Air Act offers three years, and EPA has asked states to provide a blanket fourth year, with a fifth year possible based on concerns about the reliability of electric service. State energy regulators, however, say some utilities have been slow to react. Erica Martinson explains it all: http://politico.pro/NczPAw

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EPA ONLY TO BLAME FOR PLANT CLOSURES? Two key state and regional electricity officials Monday raised doubts about claims made by some utilities that they have to shut down power plants purely because of EPA regulations. Instead, the shutdowns are blamed on a more complex and potentially questionable set of actions by the utilities, based at least in part on lower natural gas prices. Martinson: http://politico.pro/NFviVa

BIOFUELS, BIOFUELS, BIOFUELS: That’s the topic of an Energy and Commerce subcommittee hearing today — particularly the Renewable Fuels Standard, the “E15” blend and other federal mandates. Watch for complaints about implementing those mandates, particularly a provision in the Energy Independence and Security Act of 2007 that caused millions in fines earlier for refiners that didn’t mix certain cellulosic biofuels that aren’t yet commercially available. Lawmakers may also go after fraudulent RINs, biodiesel credits companies can purchase to comply with mandates, but a separate E&C panel holds a hearing on that issue tomorrow. Today’s hearing is at 10 a.m. in Rayburn 2322.

API CHIEF WARNS ON E15 BLEND: While a 10 percent blend of ethanol in gasoline has been successful, upping that percentage to 15 percent would be harmful, American Petroleum Institute President and CEO Jack Gerard will say. “E15 is a different transportation fuel, well outside the range for which the vast majority of U.S. vehicles and engines have been designed and warranted. E15 is also outside the range for which service station pumping equipment has been listed and proven to be safe and compatible and conflicts with existing worker and public safety laws outlined in OSHA and Fire Codes.” Gerard’s prepared testimony: http://bit.ly/NcoKwG

BIOFUELS MEAN ENERGY INDEPENDENCE, RFA CHIEF SAYS: Biofuels have been a key driver in lower oil imports and thus greater energy security, Renewable Fuels Association President and CEO Bob Dinneen will testify. “Without ethanol and without the RFS, our 2011 rate of oil import dependence would have been 52 percent, rather than the actual rate of 45 percent. When the facts are on the table, it becomes crystal clear that increased ethanol production has been a key driver of the recent trend toward greater energy self-sufficiency in the United States.” His testimony: http://bit.ly/Mc99eV

TRAIL MIX: President Obama is in Cedar Rapids, Iowa, for a campaign event today. While Obama’s remarks are supposed to target the economy as a whole, watch for him to bring up cutting oil and gas subsidies in favor of clean energy investment. … Mitt Romney, meanwhile, stops by Grand Junction, Colo., a state where he has previously railed against the Obama administration’s treatment of the coal industry.

** A message from America’s Natural Gas Alliance: From Seattle, WA to Pensacola, FL, cities are using clean, abundant and American natural gas to save money and clear their air. Here's how: www.anga.us/cities **

HOUSE CLEARS HYDRO BILL: The House last night passed H.R. 5892, which streamlines hydropower project permitting by the Federal Energy Regulatory Commission by exempting more small projects from permitting and orders a feasibility study on a two-year licensing process for low-impact projects, like at already existing dams. Congressional critics take note: The bill, which had bipartisan backing, passed 372-0.

HASTINGS PUSHES COUNTER DRILLING PLAN: House Natural Resources Chairman Doc Hastings will have his panel vote Wednesday on a plan to expand and speed up the Obama administration’s five-year offshore oil and gas exploration strategy. Hastings Monday unveiled his proposal scheduling about a dozen lease sales in the Gulf of Mexico through 2017, as well as in the Arctic and off the East and West Coasts, and plans a markup for tomorrow. Darren Goode: http://politico.pro/Nctjam

INTERIOR POINTS TO INCREASED PRODUCTION: Department spokesman Adam Fetcher defended the administration’s record: “In the past three years under the President's leadership, oil and gas production is up, our reliance on foreign oil has dropped dramatically and our five-year plan will further expand offshore drilling by making available more than 75 percent of America's undiscovered, technically recoverable offshore resources while protecting the environment.”

WHAT ABOUT WIND, DEMS SAY: The plan ignores offshore wind energy, Eben Burnham-Snyder, the committee’s minority spokesman, said. “Chairman Hastings says that Obama's offshore energy plan leaves 85 percent of America's shores off-limits to energy. But what about Cape Wind? What about planned lease sales in the Atlantic for wind energy?” Burnham-Snyder emailed ME. “We were set to conduct a bipartisan, collegial markup of bills to do the American people's work. Instead, they will ram this bill through, without even one hearing on its merits, just so they can attack our president.”

GREENS TO SUE INTERIOR OVER SHELL ARCTIC SPILL PLAN: The Natural Resources Defense Council and other groups plan to file a lawsuit in federal district court in Anchorage as early as today to block the Interior Department's approval of Shell Oil's spill-response plans for the Chukchi and Beaufort seas off Alaska. Details of the suit were not yet available, but it would add to the list of green group litigation over the department's movement toward green-lighting Shell's Arctic drilling plans.

ENERGY COMPANIES AMONG TOP DOMESTIC INVESTORS, REPORT SAYS: ExxonMobil comes in at No. 3 on a list of companies “still investing domestically in buildings, equipment, and software,” according to a Progressive Policy Institute study coming out today. “The fact that telecom and energy companies find it the most financially worthwhile to invest large volumes in America is quite telling about which sectors are doing well," the report says. "Energy companies like Exxon are investing in the discovery of new sources of oil and natural gas.” Also in the Top 10: Occidental Petroleum, No. 6; ConocoPhillips, No. 7; Chevron, No. 9; Southern Co., No. 10. The report: http://politico.pro/NYBrJV

COAL COMPANY FILES FOR BANKRUPTCY PROTECTION: Patriot Coal fired for Chapter 11 bankruptcy protection Monday, becoming the “first U.S. coal producer to seek court protection since prices began to plummet as electricity producers turned to cheaper natural gas,” Reuters reports. "The coal industry is undergoing a major transformation, and Patriot's existing capital structure prevents it from making the necessary adjustments to achieve long-term success," Chairman and CEO Irl Engelhardt said. Reuters: http://reut.rs/OqXQAW

REPORT: BLACK LUNG IS BACK: A 1969 law designed to reduce dust in coal mines and cut down on instances of “black lung” disease has failed, an NPR and iWatch News report concludes. “Throughout the coalfields of Appalachia, in small community clinics and in government labs, it has become clear: Black lung is back. The disease's resurgence represents a failure to deliver on a 40-year-old pledge to miners in which few are blameless, an investigation by the Center for Public Integrity and NPR has found. The system for monitoring dust levels is tailor-made for cheating, and mining companies haven’t been shy about doing so. Meanwhile, regulators often have neglected to enforce even these porous rules. Again and again, attempts at reform have failed.” The story: http://bit.ly/LGNtJf

ERICA MARTINSON’S TWICE-WEEKLY REMINDER: The U.S. Court of Appeals for the D.C. Circuit could release its ruling on EPA's Cross-State Air Pollution Rule today. It typically issues opinions on Tuesdays and Fridays.

MEANWHILE, BOILER MACT COULD COME SOON: Insiders are expecting to see the EPA’s final “Boiler MACT” rule very soon — this week or next, sources tell ME. The agency most recently told a federal court it expected to have the rule out by “spring.” Judging by Washington’s 105 degree temperatures Saturday, ME is pretty sure that ship has sailed.

API, ANGA TO RELEASE REPORT CRITICAL OF EPA FRACKING STUDY PLAN: The American Petroleum Institute and America’s Natural Gas Alliance will release a report today conducted by the Battelle Memorial Institute identifying “serious shortcomings in EPA’s plan” to study the effects of fracking on drinking water. The groups have scheduled a teleconference for 11 a.m.

POWER CO. WANTS COURT RELIEF OVER CCS PLANT: Mississippi Power asked the state Supreme Court for relief Monday after the company was denied cost recovery for its carbon capture coal-fired power plant while the court works out its legal challenges. The Kemper, Miss., coal-fired power plant, which is about a third of the way constructed, hit a speed bump in late June when the Mississippi Public Service Commission did an about-face on the company’s ability to retrieve costs from its customers while the plant is still under construction.

CFTC TO VOTE ON SWAPS DEFINITION: The Commodity Futures Trading Commission is set to vote today on the exact definition of a “swap,” and the vote is being closely watched by many in the energy industry (and elsewhere) as it will trigger new Dodd-Frank regulations. The Wall Street Journal: “After the definition is made public, swaps dealers that fall under the CFTC's oversight will have 60 days to register with the regulator, pushing them further under the Dodd-Frank regulatory umbrella. Firms will have to start putting into place compliance programs, including record-keeping and risk-management requirements.” WSJ: http://on.wsj.com/PDfnLa

IT’S NOT TOO LATE to sign up for POLITICO Pro’s Trivia Night this evening. Join Patrick Gavin and Tony Romm and RSVP your team of four to awilliams@politico.com.

QUICK HITS

— Norway ended a 16-day dispute between offshore oil and gas workers and companies just before production was to have been shut down. Bloomberg: http://bloom.bg/NcpAtt

— A climate change observation satellite thought up by Al Gore when he was vice president might finally make it into space. Orlando Sentinel: http://thesent.nl/Mh5sqO

— The National Ocean Industries Association announced a restructuring and several new hires Monday, including Jeff Vorberger as vice president for intergovernmental and political affairs. The Hill: http://bit.ly/RPYI5u

THAT’S ALL FOR ME. Have a nice day.

** A message from America’s Natural Gas Alliance: A message from America’s Natural Gas Alliance: Thanks to natural gas, we don’t have to choose between advancing our economy, our environment and our greater energy self-reliance for our nation. This year, the average U.S. household will see a nearly $1,000 increase in disposable income thanks to America’s vast supplies of affordable natural gas. This abundance also is making U.S. companies and American workers more competitive — creating more than 1 million U.S. manufacturing jobs by 2025. With continuous advances in drilling technology and strong state-led oversight, safe and responsible development is taking place every day across our country. That’s why America’s natural gas is smarter power today. Follow us on Twitter @ angaus **

** A message from Vet Voice Foundation: Tens of thousands of service members and veterans rely on public lands to hunt, fish, camp and heal from the wounds of war. These lands are part of the American heritage we fought for. As a new President and Congress look to rebuild America's infrastructure, we call on them to make an equal investment in maintaining our public lands and parks for our service members and all Americans. Support for our veterans must extend to investing in and protecting America’s natural heritage, for our children and grandchildren. www.VetVoiceFoundation.org **

Authors:

About The Author

Alex Guillén is an energy reporter for POLITICO Pro, where he covers EPA, regulations and coal, as well as lobbying and campaign finance in the energy realm. He previously wrote the Morning Energy newsletter. He graduated from the College of William and Mary in Williamsburg, Va., with a degree in anthropology and English. He is an avid reader and TV binger. The Delawarean, thrilled that there are finally Capriotti’s outposts in Washington, lives in Alexandria, Va.